County commissioners passed the ordinance, which became effective April 1, last December with the intent of ensuring buyers are alerted to the potential pitfalls of buying distressed properties. Code violations such as unauthorized structural additions and illegally built fences are rampant in Miami-Dade. Foreclosed homes, which often sit vacant for months, may also have other problems, including stolen appliances, broken air conditioning and stripped plumbing and electrical systems.

"Obviously, there were some very good intentions" behind the new ordinance, says Miami-Dade Commissioner Carlos Gimenez, who supported the new buyer awareness law. "But the actual practice, the actual implementing order is somewhat bureaucratic and may have a negative effect on the sale of foreclosed homes in Miami-Dade County. And that is not something we wanted to do."

Inspections alone can cost banks several thousand dollars and much more to fix major defects. "It is an added cost really for no reason," says Michelle Gonzalez, whose Miami firm, Floridian First Realty, markets properties for Fannie Mae. She points out that buyers already have time to inspect the home once they've signed a contract, and if problems are discovered during the inspection period, they can cancel the contract.

Brokers representing lenders must file an inspection report with the county, including the estimated cost of bringing the property into compliance, according to the new ordinance. After the report is recorded, the county will issue the certificate of use within four days, says Hilda Castillo, spokeswoman for the Department of Planning and Zoning. Without the certificate, lenders can't accept offers for the properties.

Fort Lauderdale attorney Todd Weston, who represents several national lenders, calls the law another barrier to dispose of foreclosed properties. "It is good reasoning behind the ordinance, but by the same token, it needs to be implemented and rewritten in a way that doesn't foster delays."

Some brokers and lenders are pushing for the County Commission to amend the ordinance. "It is never too late, nothing is written on stone," says Gimenez, adding that he is willing to revisit the ordinance.

Fenet fears that if code violations are reported, banks won't finance homes and condos that don't comply with the county's building and zoning codes. That would limit the pool of buyers for bank-owned homes in the county's unincorporated areas to cash buyers, he says.

"Cash investors are going to have a field day," Fenet says. "They will reap the benefits of the new ordinance."